Polaris Industries (NYSE:PII), an off-highway vehicle (OHV) manufacturer, had a rough 2016 as earnings suffered due to high dealer inventories and safety issues. However, the situation is now turning around.
Dealer inventories are down 11% from a year ago, and the company expects EPS to improve to $4.25-$4.50 in 2017 from $3.48 in 2016.
From a trading perspective, PII’s chart shows a rising wedge pattern, with higher highs and lower lows. Both the 50- and 200-day moving averages are below the stock and providing support.
After nearly touching $92 on March 10, PII has pulled back to near-term support around $88, and the stock looks ready to challenge $92 on the next leg up. Should it break through that level, it has the potential to move meaningfully higher.